The success of Enron was a big lie that the company's executives set up to hide the truth for
their own personal interests. Making financial performance the only criteria for
success led to strong quest for revenues,. High executive compensation incentives, such as stock
options tied up with theto financial performance tempted them to cut through ethical
comersethical corners and manipulate account statements. It created a chain of silent followers by
paying higher salaries, thereby keeping employees keeping tied. The culture was
characterized by blind loyalty, followership and dogmatic sales. This type of behavior and emphasis on the lower level needs of followers can be best described by theory theory of “Transformational leadership”transformational leadership. Corporate culture concerns to the behaviors and beliefs that decide how a company’s management and employees handle and interact both inside and outside business deals. The leader (Jeffrey Skilling) used a functional work team to follow him in his pursuit of unethical financial gains by manipulating stocks, fraudulent companies and wrongillrgal accounting practices.
To avoid this kind of behavior, organizationorganizations are required to adopt a code of conduct and
strengthen organizational culture based on theknown organizational valuevalues. There should be a
written code of conduct for the management as well as employees that should be
followed. Any unethical practices should be dealt with strongly to create an example for the
others.